Syncona; interim results – NAV up 32.5% over six months

Syncona Ltd (SYNC.L Market Cap. 1762m, FTSE 250 Index, 270p and 3.4% of JIC Portfolio and 0.0% of JIC Top 10)

Results for the six months ended 30thSeptember 2018

Full statement HERE

Highlights:

  • Net assets per share were up 32.5% to 208.1p.
  • Life Science portfolio is now 68% of net assets and achieved a return of 62.6% over the period.
  • A further ¬£94.3m was invested into life science during the half with total for the year ending 31stMarch 2019, expected to be at top end of ¬£75m to ¬£150m range.
  • Capital pool available for further life science investments stood at ¬£448m

Martin Murphy, CEO, Syncona Investment Management Limited, said:

“Our differentiated model of founding, building and funding businesses has continued to gain momentum across the business in the first half. We have delivered excellent financial and operational performance, which has translated into strong NAV progression.
“We have a high-quality portfolio of companies, a leading position in cell and gene therapy, and a strategic pool of capital, which underpins our ability to continue to build global leaders in life science to achieve our ambition of delivering transformational treatments to patients and capture superior returns for shareholders.”

Conclusion: There is no doubt that the change in strategy a few years ago to focus on early stage life science companies has been enormously value enhancing. Blue Earth, Autolus and Nightstar have added considerable value to the portfolio and it is to be hoped that some of its other 11 investments prove as successful. On top of that, with its available pool of £448m it can invest further in some of its existing portfolio companies as well as doubling the number of investments overall. Before today’s announcement the NAV stood at 193p, (30thJune valuation) and the shares at a 38.0% premium. With the NAV now at 208p, the premium comes down to 28.0%. That is lower than we have seen in the past but is still quite a premium to pay; one has to have faith in the business model and that management can continue to invest as successfully as they have done thus far. To me, this is a truly long-term position. Happy Holder!

The green line, (50 day moving average) is nicely above the red line, (200 day moving average); share price momentum looking pretty good!

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